DAPPMAN Challenges Dangote Refinery’s Dominance Amid Fallout with NUPENG

BY EGUONO ODJEGBA

The simmering tensions between the Dangote Petroleum Refinery and the National Union of Petroleum and Natural Gas Workers (NUPENG) have spilled into the public domain, prompting a rare and pointed intervention from the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN).

In a strongly worded statement, the association expressed alarm over the escalating dispute and its potential to destabilize Nigeria’s fragile post-deregulation downstream petroleum sector.

While DAPPMAN maintains that the conflict does not directly involve its members, the association voiced concern over the reputational risks and economic ripple effects that could impact millions of Nigerians.

“We are deeply concerned about the potential impact this may have on ordinary Nigerians,” Olufemi A. Adewole, Executive Secretary of DAPPMAN said in a release, weekend.

DAPPMAN’s statement challenges what it describes as “misleading claims” that Nigeria’s downstream stability hinges solely on the Dangote Refinery. “The Dangote Refinery is a valuable contributor, but it is not a messiah. Nigeria’s downstream sector is not driven by one facility alone. It is powered by an ecosystem of refiners, depots, marketers, transporters, and regulators, working in tandem to ensure nationwide access to fuel under often difficult circumstances.

“The remaining supply, DAPPMAN asserts, is met by a network of marketers who have long sustained the country’s fuel availability through investments in depots, fleets, and retail infrastructure.”

The statement continues: “As responsible and long-standing stakeholders in Nigeria’s downstream sector, we feel compelled to provide clarity on several inaccurate or misleading claims made in the public space — claims which, if left unchecked, could mislead the public and diminish the collective contributions of other players that have ensured national fuel availability for decades.

“The assertion that Nigeria’s downstream stability rests solely on one refinery is misleading and dismissive of the broader ecosystem. While we welcome the Dangote Refinery as a major infrastructure project, its contribution has peaked at only 30 to 35 percent of national demand. The balance continues to be supplied by responsible petroleum product marketers, including DAPPMAN members, who import and distribute under strict regulatory oversight by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

“For decades, DAPPMAN marketers have ensured uninterrupted fuel access across the country, investing in depots, trucking fleets, retail networks, and logistics and doing so even through periods of forex pressure, subsidy transitions, insecurity, and economic downturns. These contributions deserve recognition, not erasure.”

DAPPMAN also took aim at Dangote’s pricing strategy, accusing the refinery of triggering market disruptions through strategically timed fuel price reductions. These moves, the association claims, often coincide with active cargoes from other importers, creating financial strain and undermining competition.

Even more controversially, Dangote is alleged to offer lower prices to international buyers while quoting higher rates to domestic customers, a contradiction to its public narrative of prioritizing Nigerians.

“Claims that repeated fuel price reductions by the Dangote Refinery are patriotic gestures ignore their timing and market impact. These reductions were often strategically timed when other importers had active cargoes at sea or in tank, creating price shocks that undermined competition and imposed financial strain on fellow market participants, including the refinery’s own domestic customers. “Even more concerning is the refinery’s pattern of offering lower prices to international buyers while quoting higher rates to local off takers.

“This contradicts public-facing claims of prioritizing Nigerians and places unnecessary burden on domestic businesses already operating under tight margins.” Adewole noted.

In response to insinuations that DAPPMAN members deal in substandard products, the association defended its quality assurance protocols, citing regulator-accredited testing and global standards. It further alleged that Dangote has, on multiple occasions, sought waivers to distribute products with sulphur levels above approved thresholds—casting doubt on its claims of superior quality.

“We reject any insinuation that DAPPMAN members deal in “substandard” petroleum products. All imports are subject to independent, regulator-accredited laboratory testing in accordance with NMDPRA protocols and global quality standards.

“Ironically, the same refinery alleging superiority has on multiple occasions sought waivers to distribute products with sulphur levels above approved thresholds, a fact that calls into question its consistency and credibility on product quality. Nigeria’s downstream petroleum market is highly regulated, transparent, and aligned with international best practices. Attempts to cast doubt on the integrity of other compliant players are unfair and inaccurate.”

DAPPMAN also debunked the refinery’s claim of offering free delivery, revealing that marketers are required to lift 25% of their allocations using Dangote-owned trucks at commercial rates. This arrangement, according to the association, imposes logistical and financial burdens that contradict the narrative of cost relief.

“The claim that the refinery offers “free delivery” is also misleading. In reality, marketers are required to lift at least 25 percent of their allocations directly from the refinery gantry and must do so using only Dangote-owned trucks, paying commercial rates based on their destination. This arrangement imposes additional logistical and financial burdens on marketers, limits operational flexibility, and undermines the narrative of cost relief being provided to the local market.”

While the statement concludes with a call for transparency, competition, and collaboration, DAPPMAN urges all parties—including Dangote Refinery—to avoid divisive narratives and engage in responsible communication that fosters investor confidence and public trust.

“We caution against narratives that monopolize credit, shift blame, or undermine the confidence of investors, partners, and the public. DAPPMAN reaffirms its commitment to the principles of competition, transparency, and collaboration in Nigeria’s downstream petroleum industry.

“We call on all parties, including the Dangote Refinery to engage constructively and communicate responsibly, avoiding one-sided accounts that can destabilize market confidence. The future of Nigeria’s energy sector lies not in divisive narratives, but in cooperation, regulatory compliance, and mutual respect.”

As the industry watches closely, this clash underscores a deeper struggle over market control, regulatory influence, and the future of Nigeria’s energy landscape. Whether this moment becomes a turning point or a cautionary tale will depend on the willingness of stakeholders to prioritize cooperation over confrontation.